Equipment Finance News FLA members report double-digit growth in asset finance in April Published: 9th June 2014 Share UK Finance & Leasing Association (FLA) members reported growth of 10% in asset finance new business during April 2014, compared with the same month last year. The commercial vehicle finance and plant and machinery finance sectors reported new business increases of 25% and 27% respectively in the same period. IT equipment finance, which is often quarterly-end driven, showed a fall of 41% in new business following a 29% increase in the previous month. Commenting, Geraldine Kilkelly, head of research and chief economist, said: “The figures show another strong performance from the asset finance market, making April the seventh consecutive month of growth. In the first four months of 2014, new business was 12% higher than in the same period last year. “Optimism in the market was evident in our Q2 Confidence Survey of members. More than half of the respondents expected new business growth in excess of 10% in each of the direct, broker and sales finance channels over the next year.” April 2014 % change on Apr 13 3 mths to Apr 14 % change on prev yr 12 mths to Apr 14 % change on prev yr Total FLA asset finance (£m) 2,056 +10 6,050 +13 23,260 +8 Total leasing and hire purchase excluding high value (£m) 1,977 +7 5,925 +14 22,564 +8 Data Extracts: Plant and machinery finance (£m) 435 +27 1,332 +25 4,778 +13 Commercial vehicle finance (£m) 479 +25 1,450 +20 5,523 +18 IT equipment finance (£m) 77 -41 312 -7 1,521 +10 Business equipment finance (£m) 167 -12 507 +7 1,992 +7 Car finance (£m) 669 -2 1,847 +8 6,841 0 Aircraft, ships and rolling stock finance (£m) 18 -51 50 -47 254 -48 At the same time FLA members show growth of 4% in consumer new car finance volumes during April, compared with the same month last year. The used car finance market reported 9% growth in new business volumes over the same period. The annual percentage of private new car sales financed by FLA members has been stable over the past 10 months at around 75%. In the 12 months to April 2014, it was 75.0%, up slightly from 74.8% in March. Kilkelly added: “April was a quieter month for the car finance market following a strong performance in March. Consumer car finance growth remained robust, with volumes 19% higher in the first four months of 2014 than in the same period last year. “FLA motor finance providers are optimistic about future growth prospects. The Q2 2014 Retail Motor Finance Survey results showed that more than 60% of respondents expected new business growth in excess of 10% in each of the new car, used car and light commercial vehicle finance markets over the next year.” Cars bought on finance by consumers through dealerships April 2014 % change on prev yr 3 mths to Apr 14 % change on prev yr 12 mths to Apr 14 % change on prev yr New cars Value of advances (£m) 1,073 +10 4,092 +22 12,942 +25 Number of cars 69,030 +4 266,000 +17 847,047 +18 Used cars Value of advances (£m) 893 +17 2,685 +26 9,558 +26 Number of cars 88,741 +9 268,213 +18 975,164 +20 Cars bought on finance by businesses April 2014 % change on prev yr 3 mths to Apr 14 % change on prev yr 12 mths to Apr 14 % change on prev yr New cars Number of cars 38,634 -10 110,610 +10 416,224 +4 Used cars Number of cars 4,316 -9 9,803 -54 46,784 -37 Asset Finance Connect Asset Finance Connect brings you news and updates about UK and European auto, equipment and asset finance providers. Sign up to our newsletter Featured Stories NewsFoundation report reveals challenges in US construction industry NewsCHG-MERIDIAN establishes ISO-certified management systems throughout Europe NewsLondon electric taxi firm secures £1.6m to drive further growth Equipment Finance
